Pirex liquid wrapper for staked GMX and staked GLP.
Pirex GMX provides an improved user experience for staking GMX and GLP tokens.
pxGMX (GMX deposited into Pirex) and pxGLP (GLP deposited into Pirex) are liquid vault tokens that serve as a wrapper for the staked versions of both GMX and GLP. After depositing, users receive either pxGMX or pxGLP that earn yield as if the underlying tokens were staked in the GMX protocol natively.
The GMX token is the native token of GMX. It is used for governance and to receive rewards distributed by the protocol. GMX can be staked to receive three types of rewards: escrowed GMX, “multiplier points,” and ETH / AVAX rewards.
GLP is an index of assets used for swaps and leverage trading on GMX. It can be minted using any underlying index asset (e.g. USDC, ETH, WBTC, etc.) and burned to redeem the same underlying index assets. The price for minting and redemption of GLP is calculated based on (total worth of assets in the index including profits and losses of open positions) / (GLP supply).
GLP tokens are staked and earn ETH / AVAX rewards + escrowed GMX at the discretion of the GMX team.
GMX deposits are one-way. Users can exchange pxGMX for GMX using Camelot DEX.
Users receive pxGMX when they deposit GMX tokens to Pirex. The protocol takes the deposited GMX and continually stakes it to earn escrowed GMX (in the form of pxGMX), multiplier points, and WETH rewards.
The main driver of ETH rewards to GMX is the trading fees taken from the protocol. 30% of fees generated from swaps and leverage trading are converted to ETH and distributed to staked GMX tokens. The second driver of rewards are the escrowed GMX tokens, which are non-transferable GMX tokens.
Users receive pxGLP when they deposit GLP tokens to Pirex. The protocol takes the deposited GLP and continually stakes it to earn ETH rewards and escrowed GMX at the discretion of the GMX team.
The main driver of ETH rewards to GLP is the trading fees taken from the protocol. 70% of fees generated from swaps and leverage trading are converted to ETH and distributed to staked GLP tokens. When the ETH reward yield is lower than 25%, GMX distributes escrowed GMX tokens to staked GLP holders to make up the difference.
Any esGMX earned within Pirex is converted to pxGMX for users. This is an advantage over staking with the GMX protocol directly. When staking through the GMX protocol, earned esGMX is non-transferrable. By depositing through Pirex, earned esGMX is tokenized as pxGMX and is made liquid for users. This makes staking through Pirex a more attractive option for users who want liquidity and flexibility when staking.
Any multiplier points earned by assets deposited to Pirex GMX stay in Pirex permanently. This means users aren't punished for being late depositors to Pirex and it means that depositors aren't punished by users withdrawing their assets from Pirex.
In other words, the multiplier points earned by Pirex GMX are never lost.